Termination of Supply Contract with MSLP QUADRIFOGLIO for Hair Loss Products... Early Termination Due to Counterparty's Breach, Limited Financial Impact

CAREGEN terminated its supply contract with MSLP QUADRIFOGLIO S.A. for the DR. CYJ Hair Filler and RENOKIN brands (hair loss prevention and growth promotion) due to the counterparty's material breach of contract.
The termination amount is approximately 1.997 billion KRW (based on the initial contract exchange rate), representing 5.49% of the 2015 fiscal year sales of 36.419 billion KRW, but negligible relative to the current market cap of 4.8 trillion KRW.
The contract was originally set to expire on December 31, 2026, but the company exercised its termination rights and ended it early as of May 29, 2026.
No additional claims for damages were disclosed, and there are no immediate cash outflows or contingent liabilities from the termination.
While this highlights risk in overseas partnership management, the impact on the company's stock price outlook is minimal due to the small scale of the contract relative to total sales.
[AI Comprehensive Analysis]Although this disclosure reports a negative event (contract termination), the scale is very small relative to market cap and the breach was by the counterparty, so investment risk is low. However, ongoing monitoring of overseas contract management is warranted.